Mexico’s Arca Continental to invest US$681m in 2019 to boost production

USA – Arca Continental, Mexican bottler of Coca-Cola beverages has announced that it will be investing US$681 million (Ps. 13 billion) in 2019 to enhance production capacities.

The investment is also expected to boost distribution across its territories including food, beverage and snack operations in the countries it serves.

The company which is the second-largest Coca-Cola bottler in Latin America said the resources will also be elemental in strengthening operations and market execution in different divisions of its product portfolio.

“Consistent with the long-term vision of Arca Continental, in 2019 we will continue to strengthen and expand our production, distribution and customer service capabilities in the markets we serve, to strengthen our position and capture new opportunities for organic and inorganic growth,” said the Chairman of the Board of Directors, Manuel L. Barragán Morales.

According to the company, 35% will be invested in Mexico, 26% in South America and 35% in the United States where it plans to establish a new bottling plant in Houston, Texas worth US$160.46 million.

The company has also reported 14% increase in sales to US$8.32 billion and EBITDA of US$1.43 billion, 5.7% higher than in 2017, with a total consolidated volume of 2,220 million-unit cases.

In 2019 looking forward, the company said the focus remains on innovation and the improvement of the different commercial initiatives, in addition to strengthening the operations across all its territories.

This will be supported by execution of projects of digitalization of processes and better analysis of information from the market.

Meanwhile, Barragán Morales has been granted appointment of Lifetime Honorary Chairman of the Board of Directors, while Jorge Humberto Santos Reyna was appointed Chairman of the same.

“In this new stage, I fully trust that, guided by their efforts, the support and vision of Jorge Santos Reyna and the Board of Directors, the continued collaboration with the Coca-Cola Company, as well as the leadership of our General Director, Arturo Gutiérrez , we will keep our positive evolution firm, taking care of the development of the collaborators and an excellent attention to clients and consumers,” said Barragán Morales.

Arca Continental’s subsidiary Coca-Cola Southwest Beverages (CCSWB) last September broke ground on a new US$250 million distribution and production facility in Houston.

The plant, which is expected to complete in the first quarter of 2020 features million-square-foot facility including five new production lines, which will produce bottles and cans of Coca-Cola.

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